48 Report of the Executive Board
Financial review
Personnel expenses decreased by 3.4 per cent, including €30 million of exceptional restructuring
charges related to our Fit2Fight initiative.
As such, total expenses increased more than revenue and rose by 6.6 per cent to €11,091 million.
The effect of movements in exchange rates had a marginally positive impact on total operating expenses
of 1.3 per cent or €137 million.
Results (beia)
In millions of EUR 2007 2006
EBIT
1,528
1,832
Amortisation of brands
11
10
Exceptional items
307
(273)
EBIT (beia)
1,846
1,569
In millions of EUR
2007
2006
Net profit
807
1,211
Amortisation of brands
11
10
Exceptional items
301
(291)
Net profit (beia)
1,119
930
EBIT (beia) and Net profit (beia)
In millions of EUR
EBIT beia
Net profit beia
2006
1,569
930
Organic growth
314
210
Changes in consolidation
(1)
(4)
Effects of movements in exchange rates
(36)
(17)
2007
1,846
1,119
EBIT and net profit
In 2007 EBIT amounted to €1,528 million compared with €1,832 million in 2006, heavily impacted
by the EC fine of €219 million in 2007 compared with the exceptional gain on the sale of land in Seville
in 2006. 2007 EBIT (beia) of €1,846 million compared favourably to the 2006 EBIT (beia) of €1,569 million,
representing an organic growth of 20 per cent.
Flead office EBIT increased by €54 million from a loss of €24 million to a profit of €30 million in 2007.
This strong improvement was achieved thanks to a combination of positive trends. Volume growth of the
Heineken brand generated an increase in royalties. In addition, the increase in volume in innovative pack
types (BeerTender, DraughtKeg, Xtreme Draught) led to lower marketing support costs from Flead Office,
and the global increase in malting fees boosted results of Maltery Albert (which is part of Flead Office).
Finally, the cost reductions related to Fit2Fight also contributed positively to the improvement.
Heineken N.V. Annual Report 2007